CNBC, January 31, 2018: Consumer protection bureau structure upheld in blow to Trump’s deregulation efforts
The structure of the Consumer Financial Protection Bureau is constitutional, an appeals court ruled Wednesday in a blow to President Donald Trump’s efforts to ease regulations on the financial system.
The U.S. Court of Appeals for the District of Columbia Circuit made the ruling in a battle over whether the president could remove the director at will. The court in October had upheld a challenge to the structure but agreed to rehear the case.
The ruling stated that a provision of the Dodd-Frank reforms, passed after the financial crisis of 2008, “shielding the Director of the CFPB from removal without cause is consistent” with Article II of the Constitution. Dodd-Frank states that the director can be removed only for “inefficiency, neglect of duty, or malfeasance in office.”